Ben Bernanke, former chairman of the Federal Reserve and likewise the winner of the 2022 Nobel Prize in economics, has not too long ago blasted the idea of cryptocurrencies. In an interview with Dagens Nyheter, one of many largest Swedish journals, Bernanke remarked that cryptocurrencies haven’t confirmed they’ve any financial worth in any respect.
Ben Bernanke Blasts Crypto
The demise of sure cryptocurrency corporations like FTX, which was one of many largest cryptocurrency exchanges, and likewise crypto lenders akin to Celsius and Blockfi, has made analysts reassess the true contribution that cryptocurrencies have on the sector of economics.
Ben Bernanke, one of the famend economists and co-winner of the 2022 Nobel Prize in economics for his analysis on banks and monetary crises, not too long ago said his opinion on cryptocurrency within the wake of the present scenario the market is going through.
In an interview revealed by the Swedish journal Dagens Nyheter on Dec. 7, Bernanke said he doesn’t suppose cryptocurrencies represent a menace to the present monetary system as a result of no financial institution is sitting on a big pile of those belongings. He said:
I consider that to date cryptocurrencies haven’t been proven to have any financial worth in any respect.
Bernanke’s destructive opinion on crypto isn’t new, as he has additionally made comparable remarks prior to now. In Could, Bernanke stated bitcoin was used “largely for underground financial system actions and infrequently issues which can be unlawful or illicit.” He additional defined that whereas bitcoin is getting used as a speculative asset, he doesn’t suppose it will probably attain the standing of an alternate forex.
Regulation Received’t Assist
Whereas a number of consultants have referred to as for regulation on the cryptocurrency entrance as a manner for extra residents to succeed in crypto within the mainstream, Bernanke argues that regulated or not, cryptocurrencies are destined to fail.
On this regard, he defined:
Both they don’t seem to be regulated after which they are going to collapse as a result of folks mistrust them or they’re regulated after which they are going to collapse as a result of they’re largely used for legal exercise.
Nonetheless, prior to now, Bernanke was extra open to the concept of bitcoin and different cryptocurrencies changing into a menace to conventional fiat currencies. Again in 2017, Bernanke said that if bitcoin was close to to having equal transactionality as conventional currencies, rules can be issued with a purpose to cease it. On the time he remarked:
Finally governments will take any motion they should forestall it.